We develop a model where workers invest in job contact networks as an insurance against the risk of unemployment. Equilibrium job contact networks are highly connected and transmit information effectively when labor market turnover is moderate, whereas they are segmented into clusters for either...

We consider the spread of a harmful state through a population divided into two groups. Interaction patterns capture the full spectrum of assortativity possibilities. We show that a central planner who aims for eradication optimally either divides equally the resources across groups, or...

This paper studies the effect of social learning on political outcomes in a model of informative campaign advertising. Voters' communication network affects parties' incentives to disclose political information, voters' learning about candidates running for office, and polarization of the...